The Autumn Statement 2022 - Key Points for Employers
The Chancellor of the Exchequer, Jeremy Hunt, delivered the 2022 Autumn Statement on 17 November 2022.
The measures announced in the 2022 Autumn Statement included the following wide ranging tax increases:
- lowering the additional rate of income tax threshold. This will mean the top 45% additional rate of income tax will be paid on earnings over £125,140 instead of £150,000 from April 2023
- freezing the income tax personal allowance, higher rate tax threshold and NIC thresholds and limits for a further two years until April 2028
- reducing the dividend allowance from £2,000 to £1,000 in April 2023, and then to £500 in April 2024
- reducing the annual capital gains tax exemption from £12,300 to £6,000 from April 2023, and then again to £3,000 from April 2023
The Government also confirmed it has accepted the Low Pay Commission's proposal to increase the National Living Wage and the National Minimum Wage. The National Living Wage is set to increase from £9.50 to £10.42 per hour (an increase of 9.7%), and this will apply to workers aged 23 and over. The National Minimum Wage is set to increase as follows:
- 21-22 year olds - £10.18 from £9.18 (an increase of 10.9%)
- 18-20 year olds - £7.49 from £6.83 (an increase of 9.7%)
- 16-17 year olds - £5.28 from £4.81 (an increase of 9.7%)
- Apprentice rate - £5.28 from £4.81 (an increase of 9.7%)
- Accommodation offset amount - £9.10 from £8.70 (an increase of 4.6%)
These new rates are set to increase from 1 April 2023 and the increased National Living Wage is projected to benefit over 2 million low paid workers.
